Real Estate Investing

Equity Multiple

Definition

What is Equity Multiple?

Total cash distributions plus residual value divided by total equity invested.

Example in practice

An investor receives ₦30 million from a ₦15 million investment, a 2.0x equity multiple.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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